© 2002 Market Intelligence for the Education Economy 1 Web Services Creating Sustainable Value Propositions Peter J. Stokes, Ph.D. Executive Vice President.

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Presentation transcript:

© 2002 Market Intelligence for the Education Economy 1 Web Services Creating Sustainable Value Propositions Peter J. Stokes, Ph.D. Executive Vice President Eduventures, Inc. HEKATE Vancouver, Canada October 18-20, 2002

© 2002 Market Intelligence for the Education Economy 2 About Eduventures Research and advisory firm covering learning markets since 1993 Helping providers drive growth Assisting institutions in thinking strategically about e-education Delivering an independent view on key market issues

© 2002 Market Intelligence for the Education Economy 3 Web Services Agenda Definitions Benefits & Challenges Markets & Business Models

© 2002 Market Intelligence for the Education Economy 4 What Is a Web Service? According to AltaVista’s image directory, it looks like this:

© 2002 Market Intelligence for the Education Economy 5 Days of Future Past? Are web services the same thing as this industrial-age image of interlocking gears? –Or are they something new? How do they advance or exceed the promise of past efforts to “enable customer satisfaction” (HEKATE) –e.g., EAI, best of breed

© 2002 Market Intelligence for the Education Economy 6 Hype, Reality, Opportunity Computerized automobile negotiating gas prices & using GPS to guide you to the best price/location A grade book talking to a CMS without sharing a common data structure “Web services are probably the most important technological step forward since the advent of the web.” – Mark Resmer, CTO, eCollege (HEKATE)

© 2002 Market Intelligence for the Education Economy 7 So What’s Really New? The recent past has been a period of fairly good standards but poor implementation –Proprietary APIs XML functions as a contract between one API and another, reducing friction and increasing interoperability

© 2002 Market Intelligence for the Education Economy 8 A Definition “Web services are enabling technologies that facilitate the assembly and integration of applications in order to create new, more meaningful and/or more user-specific applications, all at the speed of the internet.” -- George Lorenzo, HEKATE

© 2002 Market Intelligence for the Education Economy 9 Another Definition “Web services is a technique for developing service-oriented architecture. It’s integration at the data level, the application level and the service level.” -- Andy Astor, VP, Enterprise Web Services, webMethods

© 2002 Market Intelligence for the Education Economy 10 And Another Definition “Web services is the exact wrong phrase to describe what this is. It’s not about the web and it’s not about services. It’s about software calling other pieces of software.” -- John Dubois, Technical Evangelist, Microsoft

© 2002 Market Intelligence for the Education Economy 11 Business Process Integration Then Integrated software suites Proprietary, point-to- point APIs Automation Optimization Now Frictionless interoperability XML messaging Protocols Open systems Intelligence on the network Customization Atomization

© 2002 Market Intelligence for the Education Economy 12 Web Services Agenda Definitions Benefits & Challenges Markets & Business Models

© 2002 Market Intelligence for the Education Economy 13 Expected Benefits Institutions Cost efficiency –Integration Enhanced value Customization Choice Collaboration across institutions Vendors Cost efficiency –Integration and application development Enhanced value Extend the suite Atomize the suite

© 2002 Market Intelligence for the Education Economy 14 An Artificial Intelligence? A post-client/server world Bringing the server intelligence to where it’s needed on the network Reducing transactional friction

© 2002 Market Intelligence for the Education Economy 15 Near-Term Challenges Sustainable value propositions/business models –Show me the money Business process redesign/culture change Security –Identity authentication (especially outside the firewall) Transactional integrity

© 2002 Market Intelligence for the Education Economy 16 Longer-Term Challenges Technical vs. solution-level interoperability –Software suites, partnerships, services strike back Overhead/traffic jams associated with all that messaging What about content – the knowledge piece? –Where are the publishers? –Where are the libraries? Funding sources –Impact of budgets tightening

© 2002 Market Intelligence for the Education Economy 17 Web Services Agenda Definitions Benefits & Challenges Markets & Business Models

© 2002 Market Intelligence for the Education Economy 18 Coping with Ripple Effects Web services create new risks as well as new opportunities for vendors’ businesses. They change not only how vendors work with institutions, but also how they work with partners.

© 2002 Market Intelligence for the Education Economy 19 Coping with Identity Crisis The David and/or Goliath problem: which one are you now, which one will you be tomorrow? Can you be both?

© 2002 Market Intelligence for the Education Economy 20 Emerging Market Continuum

© 2002 Market Intelligence for the Education Economy 21 Where Will Traction Occur? High integration zones –ERP & portal integration High transaction zones –Registration, credit cards, etc. Deconstruction zones –Centralization/decentralization Different tools/common services across the campus

© 2002 Market Intelligence for the Education Economy 22 Building a Flexible Model Intellectual Property Integrated Suites APIs Web Services Federated Subscription Pay As You Go Web Services Models

© 2002 Market Intelligence for the Education Economy 23 Garden of Forking Paths 1 “There isn’t a business model around atomization of functions where you can derive revenue from a subset of your application.” -- Chris Vento, CTO, WebCT

© 2002 Market Intelligence for the Education Economy 24 Garden of Forking Paths 2 “From the perspective of the end-user experience, there will still be an Office – a central gravity point and workspace. But the software business is going to be about degrees of excellence in execution via web services.” -- John Dubois, Technical Evangelist, Microsoft

© 2002 Market Intelligence for the Education Economy 25 Garden of Forking Paths 3 “Web services won’t replace the core products for business workflow. But web services will support best-of-breed and create atomization.” -- David Moldoff, SVP of Solutions Architecture & eEducation Infrastructure, SCT

© 2002 Market Intelligence for the Education Economy 26 Where to Next?

© 2002 Market Intelligence for the Education Economy 27 Thank You Peter Stokes Executive Vice President Eduventures, Inc. 20 Park Plaza, Suite 1300 Boston, MA ext.13